The Metal Propelling the EV Boom

by Sean Brodrick
By Sean Brodrick

I’m a firm believer in the bullish trend of electric vehicles and their battery metals in particular. In fact, it’s shifting into higher gear.

And now is as good of a time as ever to reinforce that position.

You see, global EV sales are soaring — up 70% in April, according to the latest data.

It’s not just China buying them all, either. (Though, they still buy the lion’s share.)

On Friday, U.S. News & World Report stated that worldwide EV sales are approaching nearly 1 million per month!

According to the findings:

“The total was 928,739 EVs in global sales, which is a 70% jump from the same month in 2022, and amounts to 14% of all sales. Meanwhile, the market in the U.S. is about half that, 7.1% at the last count. Individual states are higher, especially California, which has more than 20% EV sales penetration.”

And per Counterpoint Technology Market Research, Q1 of 2023 saw an astounding 79% year-over-year increase in EV sales the U.S. Sales are getting supercharged, driven by tax credit subsidies that were part of President Biden’s Inflation Reduction Act, which was signed into law in August 2022.

All of this momentum is having a direct impact on the most important metal required for EV batteries: lithium.

Demand for lithium has recently pushed the metal up to three-month highs, as you can see in the following chart:

Five-year price chart of lithium carbonate.
Click here to see full-sized image.

 

So yeah, it’s certainly looking like a good time to buy lithium-leveraged stocks.

That’s exactly what I’m telling members of my service, Supercycle Investor, who are well-positioned for this boom in EVs and battery metals.

In fact, at the time of writing, 14 of the 19 model portfolio positions are showing open gains, and of those, six are double-digit gains and one is a triple-digit gain!

If you want to learn more about that service, and how to join members in those eye-popping gains, click here now.

How You Can Play It

There are a handful of very profitable lithium-mining companies, but individual stocks carry increased risk.

They can be costly, too, with one of the biggest companies in the space currently trading at $227/share.

Instead, I recommend you look at an ETF that carries a basket of lithium-miners, EV companies and EV battery makers. I’m talking about the …

Amplify Lithium & Battery
Technology ETF (
BATT)

So far this year, BATT is up 15.8%. But more than 12% of that gain has come just since the last day of May.

And with the price of lithium edging higher again, up to its highest level in three months, this is pushing BATT higher.

Here's a year-to-date performance chart:

Year-to-date performance chart of the BATT.
Click here to see full-sized image.

 

BATT recently pushed up through its 200-day moving average, and it isn’t looking back.

The 200-day is often seen as the dividing line between bullish and bearish long-term trends, so the ETF is on the right side of that trend and should be on its way to $18.50 fairly quickly.

Consider adding the BATT, or other lithium positions, to your portfolio now to get ahead of the next leg up in the EV revolution.

I’ll have more for you next week.

Best wishes,

Sean

About the Contributor

Supercycles aren't daily occurrences. They happen in stages and can last for years. Sean Brodrick identifies them early and mines for the most financially sound stocks within them. And he taps into the powerful Weiss Ratings, along with our proprietary AI Performance Booster, to help him do it!

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